If less than age 18, must have some income from eligible employment1 or income from the carrying on of a business2, but this income must make up less than 10% of assessable income.5,6

Must be gainfully employed at least on part-time basis3,6,8

Must be gainfully employed at least on part-time basis3,6,8

Employer contributions

Superannuation guarantee

4

4

Mandated employer contributions (e.g. under award)

Salary sacrifice

Please note that a rollover is not a contribution; rollovers can generally be undertaken at any age. Thus, while member contributions cannot be made after age 75, a CGT Exempt component (via the small business CGT Retirement Exemption) can be created and rolled over after age 75.

NOTES:

Eligible employment means: the holding of any office or appointment; or the performance of any functions or duties; or the engaging in of any work; or the doing of any acts or things that results in the person being treated as an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 (assuming that subsection 12 (11) of that Act had not been enacted).

Business refers to any profession, trade, employment, vocation or calling, but does not include occupation as an employee.

Gainfully employed at least on a part-time basis refers to someone who is gainfully employed for at least 40 hours in a period of not more than 30 consecutive days in that financial year. This employment period must be satisfied before the date of the contribution.

From 1 July 2013, employees over 70 will be entitled to super guarantee payments from their employer.

This deduction cannot create a tax loss, i.e. the person must have derived income from employment or business (excluding passive income) and the deduction cannot exceed that income.

Effective 1 July 2017, the 10% condition is removed for the 2017-2018 and future financial years.

Individual with a total superannuation balance of > $1.6 million as at 30 June of the previous financial year will no longer be eligible to make non-concessional contributions and government co-contributions.

From 1 July 2019, those aged 65-74 with a TSB below $300,000 are able to make voluntary contributions for 12 months from the end of the financial year in which they last met the work test.

What are concessional contributions caps?

What are concessional contributions caps?

Year

Contribution cap
for ages below 50 years

Contribution cap
for ages 50 years and above

2019-2020

$25,000 5

$25,000 5

2018-2019

$25,000 5

$25,000 5

2017-2018

$25,000

$25,000

2016-2017

$30,000 4

$35,000

2015-2016

$30,000 3

$35,000

2014-2015

$30,000 2

$35,000

2013-2014

$25,000

$25,000

2012-2013

$25,000

$25,000 1

2011-2012

$25,000

$50,000

2010-2011

$25,000

$50,000

2009-2010

$25,000

$50,000

2008-2009

$50,000

$100,000

2007-2008

$50,000

$100,000

2006-2007

n/a

n/a

If age 59 years or over on 30 June 2013, concessional contributions cap is $35,000.

If age 49 years or over on 30 June 2014, concessional cap is $35,000.

If age 49 years or over on 30 June 2015, concessional cap is $35,000.

If age 49 years or over on 30 June 2016, concessional cap is $35,000.

From 1 July 2018 members can accrue any unused concessional contribution cap for a maximum of 5 years. However member can only make additional concessional contribution for any unused amount from 2019-2020 financial year, provided their total superannuation balance at the end of 30 June of the previous financial year is less than $500,000.

What are non-concessional contributions caps?

What are non-concessional contributions caps?

Year

Contribution cap

2019-2020

$100,000 1

2018-2019

$100,000 1

2017-2018

$100,000 1

2016-2017

$180,000

2015-2016

$180,000

2014-2015

$180,000

2013-2014

$150,000

2012-2013

$150,000

2011-2012

$150,000

2010-2011

$150,000

2009-2010

$150,000

2008-2009

$150,000

2007-2008

$150,000

2006-2007

$1,000,000

Individual with a total superannuation balance of equal to or more than $1.6 million as at 30 June of the previous financial year will no longer be eligible to make non-concessional contributions and government co-contributions. Refer to contributions table below if the individual triggers bring forward contribution from 1 July 2017.

Non-concessional contributions cap exemptions.

Proceeds from settlement of personal injury

Government co-contribution payments

Rollovers from taxed superannuation funds

Proceeds from sale of small business CGT assets up to cap limit. (Refer to lifetime capital gain tax cap limit table below.)

Downsizer contributions for those who are 65 years old or older up to lifetime $300,000 limit.

What is lifetime capital gain tax cap limit?

What is lifetime capital gain tax cap limit?

Year

CGT Cap amount

2019-2020

$1,515,000

2018-2019

$1,480,000

2017-2018

$1,445,000

2016-2017

$1,415,000

2015-2016

$1,395,000

2014-2015

$1,355,000

2013-2014

$1,315,000

2012-2013

$1,255,000

2011-2012

$1,205,000

2010-2011

$1,155,000

2009-2010

$1,100,000

2008-2009

$1,045,000

2007-2008

$1,000,000

What is bring forward contribution cap?

What is bring forward contribution cap?

From 1 July 2017, the bring forward contribution cap amount and period is dependent on member’s total superannuation balance at 30 June of the previous financial year.

Total superannuation balance on 30 June of the previous financial year

Non-concessional contribution cap for the first year

Bring forward period

< $1.4M

$300,000

3 years 1

$1.4M to below $1.5M

$200,000

2 years 1

$1.5M to below $1.6M

$100,000

None available but the member can contribute up to the general non-concessional cap

$1.6M or over

Nil

N/A

If member has triggered the bring forward rule and has not used up all the bring forward cap, member can contribute the remaining of the bring forward cap in subsequent years provided their total superannuation balance at 30 June of the previous financial year is below the general transfer balance cap.

What is the Superannuation Guarantee Maximum Contribution base per quarter?

What is the Superannuation Guarantee Maximum Contribution base per quarter?

Year

Contribution cap per quarter

2019-2020

$55,270

2018-2019

$54,030

2017-2018

$52,760

2016-2017

$51,620

2015-2016

$50,810

2014-2015

$49,430

2013-2014

$48,040

2012-2013

$45,750

2011-2012

$43,820

2010-2011

$42,220

2009-2010

$40,170

2008-2009

$38,180

2007-2008

$36,470

2006-2007

$35,240

What is transfer balance cap?

What is transfer balance cap?

From 1 July 2017, transfer balance cap applies as the maximum amount each member can transfer into retirement phase.

Year

General Transfer Balance Cap

2019-2020

$1,600,000 1

2018-2019

$1,600,000 1

2017-2018

$1,600,000 1

Member’s transfer balance cap is equal to the general transfer balance cap.

The cap operates on the basis of ‘credits’ counting to the cap and ‘debits’ removing value from the cap.

Credits

Debits

The value of super interest supporting income streams on 30 June 2017

Commutations of superannuation income streams

Commencement of new superannuation income streams from 1 July 2017 onwards

Structured settlement payments contributed to superannuation

The value of reversionary income streams when an individual becomes entitled to them

Certain payments arising from family law splits, fraudulent or void transaction

LRBA loan repayment when the LRBA was entered into after 1 July 2017 and the payments result in an increase in the value of the members super interest supporting their retirement phase income stream.

Trustee fails to pay the minimum pension and the income stream stops being in retirement phase

Notional earnings accruing to excess transfer balance amounts

When to lodge transfer balance account reporting (TBAR)?

When to lodge transfer balance account reporting (TBAR)?

SMSFs that have ANY members with a TSB of $1m or more on 30 June the year before the first member starts their income stream, must report within 28 days after the end of the quarter in which the event occurs.

An SMSF set as annual or quarterly reporting does not change.

SMSFs that have any members with a TSB less than $1m can choose to report any event impacting its members’ TBA annually when the SMSF annual return is due.

What is the preservation age?

What is the preservation age?

Date of birth

Preservation age

Before 1 July 1960

55

1 July 1960 - 30 June 1961

56

1 July 1961 - 30 June 1962

57

1 July 1962 - 30 June 1963

58

1 July 1963 - 30 June 1964

59

From 1 July 1964

60

What is ‘basic conditions of release’?

What is ‘basic conditions of release’?

Retirement

Preservation age to age 60 – must be permanently retired

Age 60-64 – ceased employment after attaining age 60

Attaining age 65

Other

Terminal medical condition

Permanent incapacity

Temporary incapacity

Death

Compassionate grounds

Severe financial hardship

Temporary resident departing Australia permanently

First Home Super Saver Scheme

Cease employment and account balance <$200

Conditions of release (other than Transition to Retirement Income Streams (TRIS))

NOTES:No maximum limit applies for account-based pensions (other than balance of account), 10% max limit applies to Transition to Retirement Pensions.1. For 2008/09, 2009/10 and 2010/11 financial years the minimum limits has been reduced by 50%.2. For 2011/12 and 2012/13 financial years the minimum limit has been reduced by 25%.

What tax is payable on pension payments from taxed fund?

What tax is payable on pension payments from taxed fund?

Age group

Tax payable

60 and over

Not assessable, not exempt income 2

Below preservation age

- Taxed at marginal rates with no tax offset
- Tax offset of 15% is available if a disability super benefit

Over preservation age and under 60

Taxed at marginal rates with 15% tax offset

Over 60

All benefits tax-free

IMPORTANT NOTE:

Superannuation benefit payment from untaxed funds (i.e.: GESB) in pension and/or lump sum form are subject to different tax rates and may NOT be completely tax-free to individuals over age 60.

From 1 July 2017, if members are receiving capped defined benefit income streams (including lifetime pensions/ annuities, life expectancy pensions/ annuities existing prior to 1 July 2017 and market-linked pensions/annuities existing prior to 1 July 2017) and the annual pension payment is more than the defined benefit income cap, 50% of the excess amount is taxed at members’ marginal rate.

On 1 July 2017, an individual on a transition to retirement who has not met a condition of release would not satisfy as an income stream in retirement phase and would not eligible for exempt current pension income (ECPI).

Year

Defined benefit income cap

2019-2020

$100,000

2018-2019

$100,000

2017-2018

$100,000

What are low-rate cap amounts for SMSF lump sum withdrawals?

What are low-rate cap amounts for SMSF lump sum withdrawals?

Year

Amount

2019-2020

$210,000

2018-2019

$205,000

2017-2018

$200,000

2016-2017

$195,000

2015-2016

$195,000

2014-2015

$185,000

2013-2014

$180,000

2012-2013

$175,000

2011-2012

$165,000

2010-2011

$160,000

2009-2010

$150,000

2008-2009

$145,000

2007-2008

$140,000

What are tax rates on lump sum superannuation benefit payments from taxed funds?

What are tax rates on lump sum superannuation benefit payments from taxed funds?

Age of taxpayer at date of payment

(1)
Tax-free component

(2)
Taxable component
(Element taxed in the fund)

Below preservation age

0%

20% (excluding Medicare Levy)

Preservation age - 59
- up to low-rate cap
- amount over low-rate cap

0%

0%
15% (excluding Medicare Levy)

60 and over

0%

0%

(1) Tax Free Component includes total of Undeducted Contributions, Pre-July 1983 Component, CGT Exempt Component, Concessional Component and Post-June 1994 Invalidity Component crystallised as at 1 July 2007 plus subsequent non-concessional contributions.
(2) Taxed component equates to the value of the superannuation interest less the Tax-Free Component. The total entitlement of an individual in a SMSF is treated as one interest (excluding the balance attributable to an income stream that has begun to be paid from the SMSF).

IMPORTANT NOTE:
Superannuation benefit payment from untaxed funds (i.e.: GESB) in pension and/or lump sum form are subject to different tax rates and may NOT be completely tax-free to individuals over age 60.

What are the resident marginal tax rates?

What are the resident marginal tax rates?

Income 2019-2020

Tax on this income

0 – $18,200

Nil

$18,201 – $37,000

19c for each $1 over $18,200

$37,001 – $90,000

$3,572 plus 32.5c for each $1 over $37,000

$90,001 – $180,000

$20,797 plus 37c for each $1 over $90,000

$180,001 and over

$54,097 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Income 2018-2019

Tax on this income

0 – $18,200

Nil

$18,201 – $37,000

19c for each $1 over $18,200

$37,001 – $90,000

$3,572 plus 32.5c for each $1 over $37,000

$90,001 – $180,000

$20,797 plus 37c for each $1 over $90,000

$180,001 and over

$54,097 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Income 2017-2018

Tax on this income

0 – $18,200

Nil

$18,201 – $37,000

19c for each $1 over $18,200

$37,001 – $87,000

$3,572 plus 32.5c for each $1 over $37,000

$87,001 – $180,000

$19,822 plus 37c for each $1 over $87,000

$180,001 and over

$54,232 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.The temporary budget repair levy ceased applying from 1 July 2017.

Income 2016-2017

Tax on this income

$0 - $18,200

Nil

$18,201 - $37,000

19c for each $1 over $18,200

$37,001 - $87,000

$3,572 plus 32.5c for each $1 over $37,000

$87,001 - $180,000

$19,822 plus 37c for each $1 over $87,000

$180,001 and over

$54,232 plus 47c** for each $1 over $180,000

**Including the Temporary Budget Repair Levy.The 2% Temporary Budget Repair Levy will expire at the end of the 2017 income year, returning the effective top marginal tax rate to 45%.The above rates do not include the medical levy of 2%.

Income 2015-2016

Tax on this income

$0 - $18,200

Nil

$18,201 - $37,000

19c for each $1 over $18,200

$37,001 - $80,000

$3,572 plus 32.5c for each $1 over $37,000

$80,001 - $180,000

$17,547 plus 37c for each $1 over $80,000

$180,001 and over

$54,547 plus 47c** for each $1 over $180,000

**Including the Temporary Budget Repair Levy. The above rates do not include the Medical levy of 2%.

Income 2014-2015

Tax on this income

$0 - $18,200

Nil

$18,201 - $37,000

19c for each $1 over $18,200

$37,001 - $80,000

$3,572 plus 32.5c for each $1 over $37,000

$80,001 - $180,000

$17,547 plus 37c for each $1 over $80,000

$180,001 and over

$54,547 plus 47c** for each $1 over $180,000

** Including the Temporary Budget Repair Levy. The above rates do not include the Medical levy of 2%.